Facebook deliberately allowed “friendly fraud” to avoid harming revenue

Facebook deliberately allowed “friendly fraud” to avoid harming revenue

Newly unsealed court documents show that Facebook was aware that underage children routinely used their parents’ payment information to spend large sums of money on in-game purchases, and the company chose not to fix the problem. Facebook’s own employees worried they were bamboozling children who racked up hundreds, and…
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The documents include internal discussions between employees debating whether or not they should provide a refund (chargeback) in cases where it was abundantly clear that a child had used their parents’ payment information without their permission. When contacted for comment on the case, a Facebook spokesperson sent Gizmodo the following statement:
We were contacted by the Center for Investigative Reporting last year, and we voluntarily unsealed documents related to a 2012 case about our refund policies for in-app purchases that parents believe were made in error by their minor children.

Source: gizmodo.com